Which One of the Following Provides the Most Accurate Picture

question 6

Multiple Choice

Which one of the following provides the most accurate picture of whether a company is cost competitive with its rivals?

• A) How the costs of the company's internally performed activities (its own value chain) compare against the costs of the internally-performed activities of rival companies
• B) Costs in the value chains of the company's suppliers
• C) Costs in the value chains of a company's distributors and retail dealers and forward channel allies
• D) The costs of a company's internally performed activities, costs in the value chains of both the company's suppliers and forward channel allies, and how all these costs compare against the costs that make up the value chain systems employed by rival firms
• E) Whether the company has a longer or shorter value chain than its close rivals

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Definitions:

Scanty

Lacking in amount, quantity, or sufficiency; minimal or insufficient in size, quantity, or degree.

Reverse

To change to the opposite direction, position, or course of action.

Long-Standing Business Relationship

A business relationship characterized by a prolonged period of association and mutual dealings between parties.

Mediation

A method of dispute resolution where a neutral third party, the mediator, helps the disputing parties to reach a mutually acceptable agreement.